Media reports: US tech giant shuts down research division in China
IBM is said to be closing its research and development division in China, a decision that will impact over 1,000 employees. Read Full Article at RT.com
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IBM is shutting down its research and development (R&D) division in China, a move set to impact over 1,000 employees nationwide, according to local news sources. This decision comes as the US tech giant scales back its presence in the world’s second-largest economy amid escalating tensions between Beijing and Washington.
The closure will affect the China Development Lab and China Systems Lab, primarily located in Beijing, with additional impacts in Shanghai and the northern port city of Dalian. A representative told the South China Morning Post, “IBM adapts its operations as needed to best serve our clients, and these changes will not impact our ability to support clients across the Greater China region," without providing specific information on the layoffs.
Following the shutdown of these two facilities, IBM is reportedly shifting focus toward serving private enterprises and select multinational companies in China. The Wall Street Journal has indicated that, according to briefings from IBM vice president Jack Hergenrother, the company plans to relocate its Chinese R&D functions to other locations. IBM is also reportedly seeking to hire engineers and researchers in Bangalore, India.
The closure of IBM's R&D division aligns with a broader trend among international IT companies reducing their workforce in China due to increasing competition between the US and China in the tech sector. This area is viewed as particularly sensitive and a point of contention between Washington and Beijing, as both nations strive to excel in critical fields such as semiconductors and artificial intelligence.
Notably, this year has seen significant layoffs of China-based employees from major companies including Swedish telecommunications equipment firm Ericsson, American electric vehicle manufacturer Tesla, online retail giant Amazon, and chipmaker Intel.
Lucas Dupont contributed to this report for TROIB News
The closure will affect the China Development Lab and China Systems Lab, primarily located in Beijing, with additional impacts in Shanghai and the northern port city of Dalian. A representative told the South China Morning Post, “IBM adapts its operations as needed to best serve our clients, and these changes will not impact our ability to support clients across the Greater China region," without providing specific information on the layoffs.
Following the shutdown of these two facilities, IBM is reportedly shifting focus toward serving private enterprises and select multinational companies in China. The Wall Street Journal has indicated that, according to briefings from IBM vice president Jack Hergenrother, the company plans to relocate its Chinese R&D functions to other locations. IBM is also reportedly seeking to hire engineers and researchers in Bangalore, India.
The closure of IBM's R&D division aligns with a broader trend among international IT companies reducing their workforce in China due to increasing competition between the US and China in the tech sector. This area is viewed as particularly sensitive and a point of contention between Washington and Beijing, as both nations strive to excel in critical fields such as semiconductors and artificial intelligence.
Notably, this year has seen significant layoffs of China-based employees from major companies including Swedish telecommunications equipment firm Ericsson, American electric vehicle manufacturer Tesla, online retail giant Amazon, and chipmaker Intel.
Lucas Dupont contributed to this report for TROIB News
